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As a property manager in Texas, your duties may include finding and screening prospective tenants for a property, negotiating the lease terms. You could also be responsible for rent collection, property inspection, maintenance, repair, providing updates, and communicating with the property owner.
To become a property manager in Texas, you need to obtain a real estate salesperson license from the Texas Real Estate Commission (TREC). This requires you to be at least 18 years old, complete 180 hours of pre-licensing education, pass the Texas Real Estate Sales Associates Exam, and work with a licensed property management company. You also need to submit an application and a $225 license fee to the TREC.
The Texas Real Estate Commission (TREC) is responsible for issuing real estate licenses and they also have the duty to ensure public interest can be safeguarded.
If you are interested in knowing about the property management career in Texas, this is the guide for you. You’ll learn about the steps to become a property manager in Texas income updates, career outlook, and FAQ about this profession.
But before we start, I want to give a brief disclaimer. This post is not intended as legal advice or state/federal property management training. It is for general information only. Please always follow your State laws and best practices.
When choosing a real estate school, I prefer one where you could take the courses online. This way, you could study at your own pace whenever and wherever. The CE Shop is a trustworthy real estate education provider. You may click here to see whether they offer pre-licensing course in your state. (**)
7 Steps to to Become a Property Manager in Texas
Step 1: Meet the Eligibility Requirement
- Citizen of the United States or lawfully admitted alien
- Resident of Texas
- At least 18 years of age
- Have a valid Social Security Number
Step 2: Complete the Real Estate Salesperson Pre-Licensing Education
Texas is one of the states with the most stringent education requirement. You’ll need to take 180 hours from a qualifying education provider.
The pre-licensing courses would consist the following:
- Principles of Real Estate I (30 hours)
- Principles of Real Estate II (30 hours)
- Law of Agency (30 hours)
- Law of Contracts (30 hours)
- Promulgated Contract Forms (30 hours)
- Real Estate Finance (30 hours)
When choosing the best online real estate school in Texas, you’ll need to consider different factors such as the students’ exam passing rate, number of enrollment, ease to access the course materials, feedback from students, and the price.
Here are the details of the exam passing rate of students from different education providers.
Step 3: Go through background check
The TREC needs to protect the public interest, so they will conduct a background check on all real estate license applicants.
To do so, you must submit fingerprints through the approved vendor, MorphoTrust. Then they would send the fingerprints to the FBI via the Texas Department of Public Safety (DPS).
Note that fingerprints on file for other agencies are not acceptable.
Furthermore, you need to fill out a Fitness Determination Form. In there, it will ask you background questions such as:
- Have you ever been convicted of a criminal offense? Include all felonies, all misdemeanors other than minor traffic tickets, and all military tribunal convictions.
- Have you ever been placed on parole, probation, or community supervision (also known as deferred adjudication) regardless of whether the case was dismissed or you were discharged?
- Are there any criminal charges pending against you?
If you answer “Yes” to any of the above, you need to provide more details about the incident through the Background History Form.
There is a $50 processing fee.
Step 4: Submit an application to the Texas Real Estate Commission (TREC)
You need to complete the Application for Inactive Sales Agent Information Sheet and provide the following:
- Application fee $225; Background check fee $28.25
- Cheque payable to TREC
- Electronic fingerprints
- MorphoTrust is the vendor that collects and submits fingerprints to the FBI
- However, if you have previously submitted fingerprints for a TREC or TALCB license (i.e. real estate appraiser license), then you don’t have to re-submit another fingerprint
- Supporting legal documents
- Transcripts or course completion certificates of the pre-licensing education
After you have prepared all the necessary documentation, you could mail them to the Texas Real Estate Commission P.O. Box 12188 Austin, Texas 78711-2188.
Alternatively, you could apply through the online services on their website. It would be a lot faster, and you could save $20 of paper filing fee.
Step 5: Pass the Texas Real Estate Sales Agent Examination
This examination is to test your knowledge and understanding of real estate law, principle and practices, and mathematics.
The Texas Real Estate Sales Agent Exam has 110 multiple choice questions. You’ll be given 4 hours to complete.
The required passing rate for the Texas real estate exam is 70% and you only have three attempts in writing it. Else, you’ll need to take an additional 30 hours of qualifying real estate education for each failed portion before you could register for re-write.
This is a computerized exam administered by Pearson-Vue. The exam fee is $54.
At the day of the exam, make sure to a valid photo ID to the test center.
Step 6: Work for a Property Management Company
After you pass the exam, you must work with a property management company who holds the real estate broker license in Texas. They are the one who would sponsor your real estate license.
However, not all real estate brokers provide property management services to their clients. Most of the brokers focus only on the buy-sell side of the business. So make sure you find one that specializes in property management in Texas.
Step 7: Maintain the Texas Real Estate Salesperson License
All real estate licensees must renew their license every 24 months. To do so, you would complete the license renewal form and pay the $110 renewal fee.
On the first renewal, you need to complete 270 hours of qualifying course hours, and the Legal Update I and II courses.
For subsequent renewals, you will take at least 18 hours of Continuing Education. The courses must include:
- 8 hours of TREC Legal Update I and II; and
- 10 hours of elective CE
To avoid having interruption to your real estate practice and late fees, don’t wait until the last minute to renew your license.
A Quick Table Summary of Becoming a Property Manager in Texas
| Eligibility | Education | Exam | Fees |
|---|---|---|---|
| Citizen of the United States or lawfully admitted alien Resident of Texas At least 18 years of age Have a valid Social Security Number | 180 hours of pre-licensing course 18 credit hours of continuing education every 24 months | 4 hours 110 multiple-choice questions Required passing score is 70% | Pre-licensing courses from $330 to $520 Exam fee $54 Background check $28.25 Application fee $225 |
FAQ on property management career in Texas
How much does it cost to become a property manager in Texas?
It costs approximately $828 to become a property manager in Texas. This includes the expenses to obtain a Texas real estate salesperson license. Here is the breakdown:
- Pre-licensing courses with exam prep is approximately $520
- Exam fee- $54
- Background check- $28.25
- Application fee- $225
How long does it take to become a property manager in Texas?
It takes approximately four to six months to become a property manager in Texas. But it also depends on the time it takes you to complete the 180 hours pre-licensing course, exam, background check, application, and get sponsorship by an actively licensed Texas real estate broker.
Can you become a property manager with a felony in Texas?
An applicant with a felony may not obtain a real estate license in becoming a property manager if the Texas Real Estate Commission (TREC) determines that the offense is severe. They would typically be more alarmed on incidents that impact the applicant’s honesty, trustworthiness, character, and integrity.
What is the nature of the crime? Does it have anything to do with the honesty, truthfulness, and reputation of the applicant? Is the applicant currently under probation or parole? All these are factors that may affect a real estate license application.
The TREC will evaluate each case independently. They may also require you to provide further documents and explanation about the incident.
But don’t get discouraged as everyone has a past. The most important is that you can demonstrate that you will serve the public in a fair, honest, and open manner.
Here’s an article that covers how to apply for a real estate license with a felony record. In there, you’ll find practical ideas which could help your application.
Whom should I contact if have more questions about becoming a property manager in Texas?
You could contact the Texas Real Estate Commission:
- Address: Texas Real Estate Commission, PO Box 12188, Austin, TX 78711-2188
- Phone: (512) 936-3000
- Email: information@trec.texas.gov
How much do property managers make in Texas?
Property managers in Texas make an average annual income of $98,699. It typically range between $85,681 and $113,552. (*) Your earning as a property manager would depend on your skills, knowledge and experience in managing the properties. The type and number of real estate in your managing portfolio may also affect your compensation.
At the beginning phase of your property management career, you could be working as an assistant for a property manager. So your earning could be limited at that time.
But once you have developed the necessary skillset and demonstrated your ability to work independently, there should be a significant improvement to your earning.
(*) Source: Salary.com Dec 28, 2020
Practical Tips to build a property management career in Texas
Tip#1: Obtain the Texas real estate license
Although there are certain activities you may perform without a real estate license, the things you can do are very limited.
Once you have a real estate salesperson license, you may work under a licensed real estate broker in providing key components of property management. For example, rent, list, negotiate property rental agreement, rents collection.
If you want to move up in the field, getting a Texas real estate salesperson license is a “must”.
Tip#2: Network with other real estate professionals
You may consider joining the National Association of Residential Property Managers (NARPM). This allows you to connect with other property managers, thus learn from their valuable experience and share ideas with one another. You will also find updates on the housing markets, changes to the laws and regulations.
Another group you may consider is the Texas REALTORS. It consists of mostly real estate salespeople and brokers. If you plan to run your own property management company, this can be a great referral source for your business.
Tip#3: Start your own property management company
Rather than working for someone else, you may consider getting a real estate broker license and start a property management company.
This allows you to hire other property managers with a real estate license. Thus, lead to a scalable business model.
However, running a company is very different from working as an employed property manager. You need to figure out all the different aspects of the business, such as marketing, branding, prospecting, hiring, training, and accounting.
The expenses will also be a lot higher. In addition to the broker license, you also need to account for business insurance, staff’s salary and benefits, office rent, furniture, office supplies, software, many more.
To become a real estate broker in Texas, you must:
- Be at least 18 years and have a valid SSN;
- Have at least 4 years of active real estate sales experience;
- Hold a bachelor’s degree or higher from an accredited college or university;
- Complete 270 hours of pre-licensing courses from an approved education provider;
- Pass the Texas Real Estate Broker Exam;
- Submit an application and a $353.25 fee to the Texas Real Estate Commission (TREC)
Here’s a complete guide on how to get a real estate broker license in Texas.
Tip #4: Keep up to date with the real estate laws and best practices
Property managers are constantly tasked with new responsibilities and challenges. With the rise of online rental applications, environmental health and safety requirements, it’s important for property managers to be up-to-date on what their renters are looking for in a home.
You may also consider taking the following courses to equip yourself with the property management knowledge. They are offered by Institute of Real Estate Management (IREM). IREM is an affiliate of the National Association of REALTORS®.
- Managing Residential Properties (**)
- Managing Commercial Properties (**)
- Managing Condominium and Homeowners Associations (**)
Even though they are not part of the pre-license education requirement, your enhanced knowledge will help to set you apart from others in the industry.
Tip#5: Focus on doing the right thing!
Becoming a property manager could be a rewarding career. Not only in terms of financial sense, but you also get the chance to interact with many people and work on different properties.
It is very fulfilling when you can help in matching your clients’ properties with the right tenants.
Yet, it could be challenging to find the balance between costs saving for the property owners while keeping their real estate in good shape. You need to keep in mind that honesty, hard work, and always putting your client’s interest first will eventually lead a long-term success.
I hope you find this career guide helpful. If so, please share it! Thanks!
If you are reading up to this point, I bet you must be interested in getting a real estate license. Your first step is to complete the pre-licensing courses. You should select one that has an excellent reputation and long-term track record of satisfying students. The Colibri is exactly that! You may click here to check it out yourself. (**)
(**) Affiliate Disclosure: Please note that some of the links above are affiliate links, and at no additional cost to you. Our company, JCHQ Publishing will earn a commission if you decide to make a purchase after clicking on the link. Please understand that we include them based on our experience or the research on these companies or products, and we recommend them because they are helpful and useful, not because of the small commissions we make if you decide to buy something through the links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
Disclaimer: The information in this post is for general information only, and not intend to provide any advice. They are subjected to change without any notice, and not guaranteed to be error-free. Some of the posts on this site may contain views and opinions from individual not related to JCHQ Publishing. They do not necessarily reflect our view or position.
Reference:
- Texas Real Estate Commission (TREC) (source)
- Texas Real Estate State Content Outlines (source)
- Salary.com – Property Manager in Texas (source)
